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Cambium Networks
🇺🇸 NASDAQ:CMBM
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•
Mar 31, 2023

Cambium Networks Q1 2023 Earnings Report

Reported a strong first quarter driven by enterprise product sales and effective cost management.

Key Takeaways

Cambium Networks reported a 25% year-over-year increase in revenue, reaching $77.4 million, driven by strong enterprise product sales. The company's profitability was excellent, with a gross margin of 51.2% (52.1% non-GAAP) and operating income of $5.6 million ($9.4 million non-GAAP).

Revenues increased 25% year-over-year to $77.4 million.

Enterprise revenues increased 130% year-over-year to $35.7 million.

GAAP net income was $4.3 million, or $0.15 per diluted share; non-GAAP net income was $6.8 million, or $0.24 per diluted share.

Adjusted EBITDA was $10.4 million, or 13.4% of revenues.

Total Revenue
$77.4M
Previous year: $61.9M
+25.1%
EPS
$0.24
Previous year: $0.01
+2300.0%
Adjusted EBITDA Margin
13.4%
Previous year: 3.1%
+332.3%
Gross Profit
$39.7M
Previous year: $29.2M
+36.0%
Cash and Equivalents
$38.7M
Previous year: $38.4M
+0.8%
Free Cash Flow
-$7.53M
Previous year: -$19.9M
-62.2%
Total Assets
$283M
Previous year: $214M
+32.1%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks Revenue by Geographic Location

Forward Guidance

Cambium Networks expects revenues between $72.0-$80.0 million for the second quarter of 2023, representing an increase of approximately 4%-15% year-over-year. They also anticipate GAAP operating income between $2.1-$6.2 million and adjusted EBITDA between $6.9-$11.1 million.

Positive Outlook

  • Revenues between $72.0-$80.0 million, up approximately 4%-15% year-over-year
  • GAAP gross margin between 49.4%-50.9%; and non-GAAP gross margin between 50.3%-51.8%
  • GAAP operating income between $2.1-$6.2 million; and non-GAAP operating income between $5.9-$10.1 million
  • GAAP net income between $1.2-$4.8 million or between $0.04 and $0.17 per diluted share; and non-GAAP net income between $4.2-$7.6 million or between $0.15 and $0.27 per diluted share
  • Adjusted EBITDA between $6.9-$11.1 million; and adjusted EBITDA margin between 9.6%-13.9%

Challenges Ahead

  • GAAP operating expenses between $33.5-$34.5 million; and non-GAAP operating expenses between $30.3-$31.3 million
  • Interest expense, net of approximately $0.6 million
  • GAAP effective tax rate of approximately 11.0%-15.0%; and non-GAAP effective tax rate of approximately 17.0%-21.0%
  • Paydown of debt: $0.7 million
  • Capital expenditures: $1.5-$2.5 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Cambium Networks